Nigerian stocks advanced 2.6 per cent last week during which the listing of Tony Elumelu-backed Transcorp Power added N1.88 trillion to the Nigerian Exchange’s market capitalisation.
That is not to mention the 46.4 per cent capital gain the equity contributed to the overall market value in its first week of trade.
Interestingly, equities continue to win investors over despite improved yields on fixed income assets, which have become considerably attractive after monetary authorities bucked up the reference interest rate by as much as 400 basis points in February.
In the days ahead investors’ focus will be on the corporate results of four of the Big 5 lenders (GTCO, Access Holdings, Zenith and United Bank Africa).
That could be the anchor the exchange needs to drive gains in the next couple of weeks provided they turn out impressively strong and are able to wow investors with cash rewards higher than those of the previous year.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Access Holdings
Access Holdings tops this week’s pick for currently trading significantly below its intrinsic value, brightening its chances of strong price appreciation in the future.
The price-to-book (PB) ratio of the corporation is presently 0.5x, while its price-to-earnings (PE) is 2.7x.
Linkage Assurance
Linkage Assurance appears on the list for trading significantly below its real value. The underwriter’s PB ratio is 0.4x, while its PE ratio is 2.5x.
ALSO READ: Sovereign Trust, Learn Africa, UBA top stocks’ pick this week
Zenith Bank
Zenith Bank makes the cut for currently trading below its real value. The lender’s PB ratio is currently 0.6x, while the PE ratio is 2.2x.
Custodian Investment
Custodian Investment makes this week’s list for currently trading below its real value. The financial services group’s PB ratio is 0.7x, while the PE ratio is 3.6x.
AIICO Insurance
AIICO Insurance appears in the pick for currently trading well below its actual value.
Its PB ratio is 0.8x at the moment, while the PE ratio is 4.3x.
UACN
UACN features on this week’s list for currently trading below its intrinsic value. The conglomerate’s present PB ratio is 0.8x, while the PE ratio is 5.1x.
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